Uchumi opens four branches across East African countries

Uchumi CEO Jonathan Ciano is optimistic that investors will respond positively to the firm’s expansion. [PICTURE: FILE]

By James Anyanzwa

Nairobi, Kenya: Regional retail chain Uchumi Supermarket has opened four new branches in Syokimau, Juja, Mbale in Uganda and Uchumi Segerea in Tanzania. The Nairobi Securities Exchange listed firm said it expects to unveil four more branches as it seeks to increase its footprint in the region.

Uchumi Supermarket Chief Executive Officer Jonathan Ciano said they are looking to new branches in Ukunda, Nyeri, Kenyatta University and Kisumu.

 “Plans are underway for additional branches in Kenya, Uganda and Tanzania to not only reach a greater number of our customers, but also improve our shareholder value across the region,” Ciano said during the official launch of Juja branch. The firm eyes to tap into the central Kenya shopping clientele. “As our business grows, we are looking into more opportunities to partner with Kiambu County including Limuru and Kiambu towns respectively,” he said.

“Uchumi is committed to devolution by conducting business in various counties and creating job opportunities for the youth within them.”  The company has embarked on an impressive growth map.

 From 11 branches nearly eight years ago, Uchumi now lays claim to 33 stores across East Africa. The outlets employ more than 3,000 Kenyan, Ugandan and Tanzanian nationals and servicing more than 80,000 East Africans daily.  Directors of the retail chain of super markets are also cautiously   monitoring events in the local investment landscape. This is as the company prepares to raise cash from its existing shareholders to fund its local and regional expansion drive.  The retail chain is set to put 100 million newly created shares on offer with priority to the existing shareholders. In 2005, Uchumi Supermarkets sold 120 million shares in its first ever rights issue at Sh10, which managed to attract Sh1.3 billion, an oversubscription of six per cent.

The company is seeking additional capital to finance its cautious regional growth and expansion programme as the retail chain seeks to consolidate its position in a market that has attracted strong competitors such as Tuskys, Nakumatt and Naivas. Uchumi is also looking to increase its share capital by Sh1 billion through the creation of 200 million shares.